mayor michael bloomberg proposed a challenge to the city's best architects. >> there's enormous demand for apartment that is people can afford and are right sized for some. >> reporter: design a space no bigger than 350 square feet into an affordable and comfortable micro apartment. one model looks more like the interior of a boat than a house. the couch is also a bed. a wall doubles as a counter. eric's team won the contest and now gets to build an entire apartment block. >> this administration is trying to offer options to people who are currently priced out. >> reporter: jason sash lives in a micro apartment in manhattan, 250 square feet. that's his only closet. the average suburban garage is bigger. the secret, he says, is creativity, like removing the kitchen cabinet doors, and minimalism. >> you definitely need to consider each piece of the apartment and make sure it serves multiple purposes and functions. >> each inch? >> each inch of the apartment. >> reporter: there are well-designed small apartments for people, even though people aren't well designed for small apartments. in